The Israeli Labor Market, 1995–2015

doi:10.1017/9781108907620.014

13 - The Israeli Labor Market, 1995–2015

from Part III - Investment in Human Capital, Productivity, and Inequality

Published online by Cambridge University Press: 04 February 2021

Tali Larom and

Edited by

Reuben Gronau and

Avi Ben-Bassat: Affiliation:
Hebrew University of Jerusalem
Reuben Gronau: Affiliation:
Hebrew University of Jerusalem
Asaf Zussman: Affiliation:
Hebrew University of Jerusalem

Book contents

Get access

Summary

Employment rate among 25–64 year-old Israelis increased by 10 percentage points between 2002 and 2015. The most significant increase was among Arab men, ultra-Orthodox women, older and low-educated individuals. The increase in education accounts for about 20 percent of the rise for men and 40 percent for women, and the rest of the rise is attributed to a series of policy measures: cuts in welfare and child allowance, changes to the tax system, and raising of the retirement age. As a result, households’ gross labor income and disposable (net) income increased for all. However, net income grew faster for non-Orthodox than for Arabs and ultra-Orthodox households, and net income inequality rose.

Keywords

Labor Supply Gender Wage Gap Education Fertility Human Capital Policy Inequality

Type: Chapter
Information: The Israeli Economy, 1995–2017
Light and Shadow in a Market Economy
, pp. 397 - 432

DOI: https://doi.org/10.1017/9781108907620.014 [Opens in a new window]

Publisher: Cambridge University Press

Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Primary Sources

Cohen Goldner, S. (2019).The Effect of Foreign Workers on Employment and Wages of Israeli Workers. Herzliya: Aaron Institute for Economic Policy.Google Scholar

Eckstein, Z., and Larom, T. (2016). Poverty in Israel: Reasons and Labor Market Policy. Herzliya: Aaron Institute for Economic Policy.Google Scholar

Eckstein, Z., Lifshitz, O., and Larom, T. (2018). The Labor Market as an Engine for Growth and Poverty Reduction. Herzliya: Aaron Institute for Economic Policy.Google Scholar

Myers–JDC–Brookdale Institute and the National Insurance Institute (2008). Evaluation Study of Mehalev: Summary Report. Jerusalem.Google Scholar

Myers–JDC–Brookdale Institute and the National Insurance Institute (2010). Findings from the Evaluation of the Lights to Employment Program: Final Report. Jerusalem: Myers–JDC–Brookdale Institute and the National Insurance Institute.Google Scholar

Schlosser, A., and Shanan, Y. (2016). The “Employment Circles” Program: Interim Report. Tel Aviv: The Foerder Institute for Economic Research.Google Scholar

Strawczynski, M. et al. (2015). The Labor Grant (EITC): Follow-up Report of the Research Team up to Eligibility Year 2012. Jerusalem: National Insurance Institute, Israel Tax Authority, Bank of Israel, and Myers–JDC–BrookdaleInstitute.Google Scholar

Secondary Sources

Bank of Israel (2015). Recent Economic Developments 140: April–September 2015. Jerusalem: Bank of Israel.Google Scholar

Cohen, A., Dehejia, R. H., and Romanov, D. (2013). Do Financial Incentives Affect Fertility? Review of Economic and Statistics, 95(1), 1–20.Google Scholar

Dahan, M. (2017). Income Inequality in Israel: A Distinctive Evolution. Munich: CESifo Group.Google Scholar